Dai stablecoin issuer MakerDAO passed a governance proposal to remove renBTC from being used as collateral and reduce exposure to what’s deemed a risky asset by the DAO. RenBTC is a wrapped bitcoin asset developed by the Alameda Research-backed project Ren Protocol.
MakerDAO lets users mint the dai stablecoin by depositing excess cryptocurrency collateral. In December 2020, MakerDAO allowed users to deposit renBTC tokens in specialized "RENBTC-A" vaults and mint dai.
(By Vishal Chawla)